Buyer Beware


The Internet has allowed each of us to have a tremendous amount of information at our fingertips. We are also bombarded with opportunities to make money: working from home, be an Internet marketer, do nothing and get paid, etc. While each of these might be true, buried in all of the real legitimate opportunities lies some traps.

Here are five ways to recognize the traps in the midst of legitimate opportunities. Beware of:

(a) The company requests your resume and a picture – what does your picture have to do with anything?

(b) The company has success stories but when you Google the companies name you can’t find any other information about them – people normally blog about great companies, so you should be able to find some information out there about a given company.

(c) The company doesn’t have a website – if they are making that much of a difference shouldn’t they have a website?

(d) The company says “we want you to collect the money for us” – these are usually illegal operations, be careful.

(e) The company promises that you will make a truck load of money but never discloses its product or service – a business with no product or service is usually a scam, beware! Remember good companies always under promise and over deliver.

In searching for income opportunities please do some due diligence by checking to see if any of these five concepts are true.

The Jobs Creation Act


Many of us credit former President Bush for the Jobs Creation Act. I guess he does deserve some credit for this. But have you taken advantage of the Jobs Creation Act? Well if you haven’t, there is still time and I will share with you how you can take advantage of this Act.

The Jobs Creation Act has three elements: identify, fulfill and retain.

First, identify a business opportunity or an unfulfilled need of people. Second, develop a means whereby to fulfill the need or take advantage of the business opportunity. Third, execute the fulfillment process and then retain the client or advantage received from the business opportunity.

This process used to be the advice given to people who had a job and needed a little more money to make their “ends meet”. Now this process can apply to many more people; especially for those who are currently unemployed or in danger of losing their jobs. Everyone should take advantage of the Jobs Creation Act.

Creating Culture Within Your Business
There are tangible things that are needed in business like equipment, labor and supplies but then there are also some intangibles that can make or break your business. In many cases it is the intangible aspects of business that actually become more important than the tangible items. One such intangible aspect of a business is the culture within it.

Culture is defined as the set of shared attitudes, values, goals, and practices that characterizes an institution or organization. Culture is everything to a business. It is the culture of the business that your customers will experience. If the culture of your organization is professional, then your customers will have an experience that imposes rigorous rules and regulations. The culture in your business should be people friendly, free flowing and orderly.

I could go on all week about creating culture within your business but I will sum it up in four principles:

Cast the vision – In order to create culture within an organization the vision must be cast or articulated to those who are to participate within the organization. Make certain that the vision is communicated in its simplest form even if it is complex.

Sell the vision – It is easier to sell the members of the organization the vision when the leader is also sold on it. The leader must believe that this is the vision for the organization and push through the difficulties that will be encountered while managing the voice of the naysayer.

Resell the vision – From time to time the leader will need to recast the vision. It is important to find different methods to resell the vision. Some suggestions include: having people within the organization read a book regarding the topic, a weekend trip, social gatherings, internal slogans that support the vision, incentives that promote the vision and meetings.

Clarify the vision – Please know that along the way the vision my have to be clarified or adjusted slightly. Therefore, it is important to allow the organization’s members to ask questions so that everyone is clear. Clarity of vision will also come through reselling the vision.

If you want to create a certain culture within your organization follow these four fundamental steps and overtime people will either buy into the vision or they will leave the organization.

Decisions

Life is full of opportunities to make decisions.  Should I go right or left, forward or back, take this job or that job?  Each decision we make shapes our experiences and path of life. Therefore it is important to make the correct decisions.

One of the decisions some must make is whether to pay down or invest their money, especially with tax refund time upon us. Which one should you choose? I would say, do both.  There is a win-win situation if you have the ability to do both. Let’s take a look at a scenario for a moment.

Aaron has $400.00 left over each month after all of his monthly obligations have been met.  He has an outstanding credit card balance of $5,000.00, which is also part of his monthly obligations.  If Aaron uses the $400 each month to pay down his debt, he would retire his debt faster but two things work against him: (1) while paying down the debt there is no money to invest and (2) he might be missing a golden opportunity to take advantage of investments as they materialize. 

But if Aaron were to split the $400.00 reserve evenly between investment and paying down his debt he would enjoy the benefit of retiring the debt a little faster and investing.  Suppose his $200.00 monthly investment generated $500.00 per month, what type of position would Aaron find himself in? Aaron could use the profits from the investment to retire the debt even faster. 

So think about the dual benefit in your next financial decision!

Money on The Table

This year put your money to work for you more efficiently than you have done in the past. This is one of the best things you can do. We consistently work for money. However, for many of us, money never works for us.  It doesn’t matter how much or how little money you have, invest it wisely and watch it work for you.

With the unemployment rate reaching record highs, the stock market seemingly on a recovery run and a little fear in the market, it is a great time to invest.  Invest what do you mean?  Try some alternate investments with the cash you have laying around. 

Who has cash lying around?  More then likely you do! If you have been separated from an employer that offered a retirement plan that you were apart of, then you have money lying around.  Let me show you how to move some of those funds from simply lying around to working for you.  You have the power and opportunity to do some great things this year with the money you have on the table.  Contact me at info@frederickotowles.com. 

The Key to Investing

There are some things that professional investors know that many of us don’t because of their experience, education and instinct.  But there is something that places us all on the same playing field, and it’s not a huge secret – its cash.  The key to investing is having cash available.

Cash is the key because it gives us options.  Take a look at your portfolio and determine how much you have invested in the market.  Are you investing more than 75% of your disposable income?  If so, that might be a mistake. Maybe you should think about only investing 50% of your disposable income in the market. 

In 2010, keep cash on hand in order to take advantage of great investment opportunities as they present themselves.

Are You an Entrepreneur or Entrepreneurial?

Typically we have been led to believe that being an entrepreneur is the first step in financial freedom. While reading Robert Kiyosaki’s Cash Flow Quadrants, I realized that this is not the case at all. Please don’t get me wrong. Becoming an entrepreneur is a very bold move that should be commended. However, we must also understand that being an entrepreneur today many times means that you are a free worker with many more responsibilities to handle.

This post is designed to make us aware of what an entrepreneur is and to identify someone who is an entrepreneurial.

A person who is entrepreneurial is one who has a vision which reaches a little further than an entrepreneur. He or she is able to organize and manage the business. This person is also able to assume the risk of the business. Someone who is entrepreneurial does not allow the business to manage or dictate to them. An entrepreneurial mindset is one that looks to expand the business while building organizational leaders to manage the day to day operations.

It is important to decide which of these you are. Although the functions of both are similar, there is a distinct difference in the time and energy expended for each one. The entrepreneurial person will spend a lot of time developing the business model, structure and culture in the beginning of building their business. However, this person will seek to expand and identify leaders within the organization or from the outside who can manage the day to day operations, thus lightening their load a bit later on in the life of the business. The entrepreneur will always do what he or she knows best, handle to the day to day operations. Sometimes entrepreneurs can suffer from health issues as they put in very long hours, deal with consumer pressure and get very little rest or down time.

So You Want to Save Money?

Happy holidays everyone! Here are some quick tips on saving money:

(1) Eat in more and out less – On average Americans eat four meals each week outside of their home. Here is another shocker; in 2007 an American household’s annual average spending on food at home was $3,465 and $2,668 outside the home according to data provided by the US Census Bureau (2008). That is far too much money spent on dining out. For the average American household these food expenses (inside and outside the home) consume 13% of the annual household income.

(2) Make and take – While you are eating in more, prepare lunch for work before you leave the home. Some doctors have said preparing lunch at home can be beneficial to our health. This is a great way to save money and be healthy with one swift change, awesome!

(3) Shop in order to drop – Some of the services we are accustomed to now have lower priced alternatives. Here is a look at some alternatives: traditional land lines could be replaced with VoIP (Voice Over IP), cell phone rate plans have changed and car insurance is becoming more competitive. Therefore, shop around for some of the essential services. There maybe a better price out there for you without losing the quality of service you are looking for.

(4) Adopt a new policy – When spending money we need to think strategy over impulse and need over desire. In the New Year, you should adapt a new policy. If it doesn’t assist you in generating revenue it is a liability. Place more focus on income producing and family centered activity than desire.

(5) Increase in knowledge - Above all else we each need to increase our financial literacy. The old statement is true – “what you don’t know will harm you”. Read books, financial magazines, listen to financial networks or speak with experts in the financial industry who can assist you with increasing your financial literacy. Financial literacy is more than knowing how to generate revenue!

I hope that these five tips assist you!

New Style for 2010: Be Frugal

The 2008 US Census Bureau income and expense figures reports that the average American household has only $494.37 of discretionary funds left over each month after paying the monthly household expenses These expenses include: housing, utilities, food, transportation, health care, entertainment, personal insurance and payroll taxes. This translates into roughly $16.00 per day per household.

With a budget of $16 per day, it is important that we become frugal in 2010. Otherwise, we will have a major problem. In 2010, find ways to reduce expenses if at all possible. It is no wonder that American families save less than families in Canada and England.

If you were given $16 each day to do with as you please what would you do? This is a definite call for each of us to live below our means.

I Want to Invest But ….

I have had a number of people tell me they want to invest; get back in the real estate game but there is an issue. The issue usually starts out like this “but my credit” or “but the bank”. Unfortunately that is the story for many these days.

My question to those individuals is always who says you have to do it the traditional way? Did you know there are a number of alternative methods of financing for an individual who wants to invest?

There are self-directed IRAs, private equity and joint ventures along with several other alternative methods of investment. Have you tried or heard about any one of them? Please understand that many of these alternative financing methods are not exclusive to real estate but for almost any type of business. If you would like to learn more about alternative financing for real estate send me in an email info@frederickotowles.com.

The New Enron?

Recently the New York Time reported that banks want to move away from GAAP – Generally Accepted Accounting Principles. For years US companies have relied on GAAP as the general rule for financial reporting. GAAP is somewhat a yard stick for the financial condition of US companies. Now the banks are requesting that this be altered a bit to so that they don’t look as bad in adverse financial climates.

Robert H. Herz, the chairman of the Financial Accounting Standards Board said that “consumer spending depends in part on how wealthy people feel”. When I hear talk like this I think, “Isn’t this what Enron did”? Didn’t Enron misrepresent its financials to appear to be a more robust company financially then it really was? But maybe if you ask for governmental assistance to change the rules a bit, it becomes legal.

Herz continued to state that “I (he) support the goal of financial stability and do not believe that accounting standards and financial reporting should be purposefully designed to create instability or pro-cyclical effects.” Again I ask, shouldn’t the financial reporting of a company mirror the financial condition of a company. If the company is sick financially we should say that, instead of potentially making it seem as if the problem does not exist.

Let’s keep an eye on what decisions are made regarding how banks are able to present themselves on paper.

Be Aware: Four Deductions That Could Cost You

There are a few deductions that you want to pay attention to this tax year. With the financial climate the way it currently is, every little bit will count.

Deduction Alert #1 - Out of pocket charitable contributions: Many give cash to charity organizations and never remember it when the tax return is filed. Take some time now to think of the times you gave cash to charities and write the occasions down. It would be great to obtain receipts for these contributions if you can. Also please remember if you used your vehicle for charitable purposes record the mileage. You are able to deduct fourteen cents per charitable mile driven.

Deduction Alert #2 – Education Tax Credit Expanded: You will notice a new credit on your 2009 tax return. Its name is the American Opportunity Credit. This credit will grant a rebate up to $2,500 for each qualifying student in their first four years of college. There are income restrictions for receiving the full credit. These restrictions begin at the modified adjusted gross income for individuals of $80,000 and $160,000 for married couples.

Deduction Alert #3 – Energy-saving home improvements: The purchase of biomass fuel stoves, qualifying skylights, windows, outside doors along with high-efficiency furnaces, water heaters and central air conditioners can also qualify for a tax credit.

Deduction Alert #4 – State Taxes: That’s right, state taxes are deductible in 2009. If you had to pay state taxes this past spring you can be granted a deduction.

Business Anxiety

The term anxiety was birthed from words that mean to think narrow-mindedly and to be taken by the throat. As people who operate within a world with others, it is more than likely that we will feel some level of anxiety in several areas of our lives.

Here are a few anxiety triggers that can be experienced in business, regardless of the size of the organization:

Money – businesses always have an issue with money. CFO’s are always looking to reduce spending in order to increase the bottom line, while COO’s and CFO’s are seeking new ground to increase the revenue of the organization. As long as there is a business, there will be some level of anxiety created by money.

Leadership – in a day where people are changing, becoming less tolerant, more independent and less loyal; leadership is always going to be challenged. As a leader you have to improve on your leadership ability – the ability to deal with competitors, new thoughts, economic changes and the ability to deal with a variety of people inside and outside your organization. Maybe the best leadership move you can make is to appoint another leader to assist in dealing with some of these changing elements.

Growth – determining what stage your business is currently in, knowing where it is going and being able to discern when it is time to make a move in advance for the purposes of growth. I know some entrepreneurs who worked from their home office. However, in order for their business to expand they moved into an office building. Making the right move at the right time to be just ahead of your firm’s growth rate can cause anxiety.

Staff Conflict – pleasing people isn’t easy. Coming to an amicable resolution isn’t always the easiest thing to do either. Internal conflict caused the Roman Empire to collapse and it will certainly do the same thing to a business.

Retention – the Internet has created instant competition to almost every business. Consumers that are seeking more service for less cost can make them a bit disloyal. What do you do to retain clients? This can be a big source of anxiety for most small business owners.

Ideas – most entrepreneurs are flooded with a ton of ideas that seem profitable. This is both a gift to many as well as a curse. What ideas are indeed profitable? Which of those ideas are to be acted on now? Which ideas are to be executed at a later time?

These are just a few business anxiety triggers, you may have more. My suggestion here is to develop a resource or mastermind team to assist you in resolving some of these areas of anxiety. The key to handling these anxieties is never to be reactive or defensive. In cases of anxiety practice being responsive, responsible, be thoughtful and think about the “Big Picture.” Learn to manage those anxieties by developing a better you.

Your Financial Score Card

Reminisce back to exactly one year ago from today. At that exact moment, how much money did you have in the bank? What did your investment portfolio look like? Did it seem easy or difficult to meet your monthly financial obligations? Where you more determined to make financial improvements back then or not? What were some of your sort term goals? How many of them have you reached?

I would dare to say that many people walk around frustrated about their financial score cards. However, if we answer these questions truthfully, many of us are not worried that we haven’t improved financially. We are more worried that we didn’t follow the financial plans that we committed to at this time last year.

Today, I challenge you to sit down with your spouse or close friend and make some financial commitments today. Maybe the commitment will be to save at least 5% of your earnings. That commitment could be to stay on budget throughout 2010. Another commitment could be to constructively use your time. Be determined to not have any of your time wasted. Instead, use that time to earn additional income. Everyone’s commitment maybe different but it is definitely needed. Make your commitment today and stick to it tomorrow.

A Lesson From The Grid Iron

Emmitt Smith shared one of the most valuable lessons I have ever seen from the football field several years ago. In a game against the Minnesota Vikings the running back struggled to perform like he had previously. The Vikings defense was just that good. One play after another, Smith was stuffed for a big loss or minimal gain.

Most running backs that experience what Smith did that day become frustrated. That frustration is then demonstrated outwardly. Smith didn’t complain or act out; he simply continued to do what he was supposed to do – run the football.

Smith had to deal with several elements that weren’t in his control. The first element was to get his offensive line to efficiently block their opponent. The second element was the Minnesota Viking’s defense.

Where is the lesson? After being stopped time after time, Smith continued to press. The game went into overtime. On the very first overtime play, Smith was handed the ball and exploded for a 95 yard touchdown run. What happened? Smith never gave up, never got frustrated and stuck to what he knew how to do.

The lesson that we can grasp from this football game is when we face diverse situations in business, we should continue to do what we know how to do. Continue to press, continue to work, never give up!

Get Out of Debt Card

Growing up in the Monopoly playing generation I, along with many others were conditioned to believe there was a “Get Out Of Jail Free Card.” That type of conditioning has transferred to the next generation in terms of debt. Many commercials, Internet posts and talk from industry professionals portray that the process of getting out of debt can occur without making any major adjustments. Please don’t be fooled, as this is not true.

There are three adjustments that must transpire if you intend to get out of debt:

Reduce spending – You might have heard this one before from me or someone else: Take a serious assessment of your weekly and monthly expenses and decide what expenses are in the “Need” category and which are “Wants”. Eliminate all the “Wants”, at least for now. Also, I would research alternatives to the items on your “Need” list. For instance a telephone might be on your “Need” list. However, you might want to consider VOIP (voice over IP) as an alternative.

Create revenue – In addition to reducing your spending, it is important to seek ways to create revenue. List the things that you like to do or that you do naturally. Seek a coach that will review the list with you and determine ways of producing income from a given area.

Change perspectives – This might be the most difficult of the three adjustments to accomplish. Getting out of debt causes a change of lifestyle as we will have to adjust some things. This new perspective on spending and money will be invaluable to you over a period of time. You might also need to speak with a coach here as well.

Getting out of debt will come with a short term cost but long term it will be more than worth it.

A Great Christmas Gift

With Black Friday quickly approaching, I think this post is timely. The market awaits customers to bombard stores and spend money on retail items this Christmas. Many stores depend on Christmas spending because it could make a big difference on the way their financial statements look.

Don’t worry retailers. My purpose is not to advise consumers not to spend. However, I am asking that we all assess the value of our gifts. My wife and I stopped giving gifts that were of little to no value to the youth in our family. One year we purchased stock for each of our godchildren. We did this because we were trying to impart a different type of thinking in the minds of our godchildren. We need our youth to think long term.

How about this year, in addition to the new video game, doll or toy we buy our kids, we add something of long term value, too? Maybe we should purchase a few shares of stock, prices are low. Maybe it will be some thing else, but lets think long term for our children under 18.

The Greatest Fear Ever

A friend of mine tells the story of how his dad helped him overcome his greatest fear – swimming. He begins the story by describing his father as a very down to earth, straight to the point person. One day the father tells his son that he is going to teach him how to swim. So both men go down to the river where the swimming lesson would take place.

My friend did not understand why he was the only one in swimming attire because his dad was not. Since his dad was a no-nonsense person, he tells his son, “Now I am going to teach you to swim, just remember to relax.” After saying this, the dad grabs his son and throws him into the river.

Once in the river, my friend panics as he believes he is going to drown. After a few seconds he heard his father screaming from the shore “relax, just relax”. Hearing those words the young man relaxed and began to float, or realized that he could float.

The next step was for the young man to develop the swimming technique. For this step his dad came into the river and showed him how to swim.

The young man first had to overcome his fear of the water. He was not afraid to swim; he was frightened by the uncertainty of what would happen once he was in the water, a new environment. Many of us see starting a business in the same manner because we are so uncertain of what will happen when we get into the business.

This is why I believe network marketing is the best business to start off in for anyone who is a bit frightened about business. Your sponsor will throw you into the business and allow you to realize that you can actually do this business. Then your sponsor will get in with you and show you how to navigate the business.

So my challenge to those who are afraid of starting a business of their own is to jump in, relax and know that your sponsor will help you swim. For assistance to find the right network marketing for you please contact me at info@frederickotowles.com.

Perspective

Merriam Webster’s Dictionary gives various meanings for the word perspective: (1) a visible scene, especially one giving a distinctive impression of distance, (2) a mental view or prospect and (3) the appearance to the eye of objects in respect to their relative distance and positions.

I learned a lesson in perspective while driving one day. About a year ago, I rented an SUV while my car was being repaired. While driving the SUV I noticed navigating the roads became easier. Since the SUV was in an elevated position as compared to my car, I was able to observe the traffic from a different viewpoint. The person moving slowly in front of me was doing so not because of the traffic in front of him but because he was using his cell phone.

Once my car was repaired I realized that by sitting at a slightly lower position my ability to see in the manner I did while in the SUV was changed. Many times it is our perspective on a business venture, life situation, etc. that makes each of us respond differently.

I always wondered how two people of equal educational or cultural backgrounds and experiences could respond differently to an opportunity. What makes one see the advantage of an opportunity and the other person not? The answer is our perspective. From what angle are they seeing the opportunity?

In order to be successful in business, relationships, and any other areas of life we must examine our perspective. Do you notice a pattern in your life of bad relationships with those in authority? Do you notice a pattern of missed opportunity? Do you frequently begin sentences and thoughts with “I should have” or “If I would have”? These are just a few signs that there might be a need for a change in your perspective.

How does one go about changing their perspective? This does not happen overnight but will change over a period of time by being exposed to the right materials. We must read good books and listen to great audio CD’s. Eventually, if we are exposed to these resources consistently, a change in our perspective will occur. What personal development books do you have in your library? If you do not have any or you are not sure which ones to purchase, I can suggest a few, email me at info@frederickotowles.com.

The New Law Of Money: Buy, Save and Receive

This is something that I had to write about. An amazing process is being implemented. Now people like you and I can make purchases, save money and time while producing a revenue stream all for no cost.

A new company named Blastoff is creating a new law in terms of money. This phenomenon is catching on so quickly that many major retailers are all lining up to be apart of the Blastoff network. Other retailers are currently planning to launch major campaigns to attract people like you and I to do this network.

For more information about this opportunity visit www.newlawofmoney.com.